In 2021, 30-year mortgage interest rates hit historic lows, with rates as low as 2% to 3% just a few years ago. Current rates around 7% haven’t been seen since 2007. You can lower your rate up to 1.25% by improving your credit score, potentially saving over $91,000 in interest on a $300,000 loan.

Credit score affects your mortgage rate, with average APRs varying by score tier. Factors like debt levels and down payment size also impact rates. Mortgage lenders consider debt-to-income ratio, loan-to-value ratio, down payment amount, and loan term when determining your rate.

The most common mortgage is a conventional loan, backed by government agencies like Fannie Mae and Freddie Mac. Other loans, like USDA loans for rural areas, FHA loans for first-time buyers, and VA loans for military personnel, offer different rates. VA loans often have the lowest rates among these options.

A good mortgage rate is around 6.77% or lower, based on current rates by credit score. Historically low rates of 3% or below occurred due to aggressive Fed actions in response to COVID. Rates may vary based on factors like down payment, location, and credit profile.

Read more at Yahoo Finance: Current mortgage rates by credit score